AI to reshape, not reduce, demand for Singapore Grade A offices: C&W
Amongst the 4 scenarios modelled in its study, Cushman & Wakefield posits a standard situation that presumes moderate efficiency gains from constant AI adoption, together with secure work levels supported by ongoing hiring in office-intensive industries.
Subsequently, as more companies move to far better work areas, the flight to quality could expand the existing space in between prime and non-prime work areas. According to Cushman & Wakefield, Grade An offices regulate a rental premium of 48% over Grade B workplaces as of 2026, increasing from 34% in 2019.
In any case, Singapore’s setting as a hub for modern technology, specialist solutions and various other knowledge-intensive businesses gives it an advantage as AI adoption accelerates, said Natalie Craig, chief executive of Cushman & Wakefield Singapore.
Based upon the scenarios, CBD Grade A workplace vacancy in Singapore is forecasted to range in between 1.5% and 4.9% by 2030, compared to 4.4% as by the end of 2025. Meanwhile, rental movement for Grade A workplaces could range from 6.5% growth to a decrease of 2.3% in 2030. In comparison, leas expanded by 2.2% in 2025.
The variety of outcomes indicates a “resilient” prime office market, with vacancy continuing to be below 5%, mentioned Dr Dominic Brown, head of international research at Cushman & Wakefield. “It shows why the impact of AI on real estate can not be comprehended via jobs alone– supply, productivity, business growth and the changing role of the workplace all issue.”
The study evaluated four scenarios with different assumptions associating with the price of AI adoption, along with economic and labour market impact. The scenarios represent a range of prospective results– AI-led efficiency growth driving raised interest for office space on one end, and AI-driven labour shift weakening leasing demand on the other.
At the same time, brand-new prime workplace supply remains limited, which will additionally sustain the Grade A market. Cushman & Wakefield jobs vacancy for Grade A workplaces in the CBD to tighten to 3.7% by the end of this year and fall listed below 2% beyond 2029. On the other hand, leas are anticipated to raise 4.8% this year.
In a September investigation record titled AI Impact: Office Insights Singapore, the property services firm studied the prospective impact of AI adoption on Singapore’s economic situation, employees and commercial realty through to 2030.
While the expanding adoption of AI is set to reshape how services make use of the workplace, it is unlikely to considerably reduce need for Grade An office space in Singapore, according to Cushman & Wakefield.
“As companies reconsider exactly how and where their individuals work, we expect need to become a lot more careful, thereby placing an even higher premium on quality, connectivity and flexibility,” she added.
In opposition to this background, the firm anticipates need for higher-quality workspaces to be strengthened, even as some work gets replaced by AI. “As routine tasks become significantly automated, workplaces are expected to play a better duty in cooperation, innovation and client involvement,” Brown discussed.
